Equity Loan scheme open to first-time buyers

A new Help to Buy: Equity Loan scheme opens to first-time buyers and will be available for two-years from 1 April 2021. The Help to Buy scheme will end on 31 March 2023.

Help to Buy: Equity Loan is a loan from the Treasury that you put towards the cost of buying a newly built home. If you are a first time buyer and are eligible for an equity loan, you can borrow up to 20% (40% in London) of the purchase price of a new build home.

Subject to your eligibility and the suitability of the scheme for you, when searching for a property, you can only apply for the Help to Buy: Equity Loan if you reserve your new home with a Help to Buy registered homebuilder.

Who is eligible?

If you are considering taking advantage of the scheme, you will need to meet the following requirements:

  • You must be able to pay the monthly fee and interest payments
  • You must not own another property or plan to enter a part exchange on your old house
  • You must not rent or sublet the property once purchased

It’s important to consider if the Help to Buy: Equity Loan will be suitable for you. You may already have a deposit to secure a mortgage and may not need to take advantage of the scheme. If you are unsure, you can get in touch with us and we can discuss the options that are right for you.

This scheme applies in England only. Scotland, Wales and Northern Ireland have similar schemes available – you can find more information below:

Help to Buy – Wales

Help to Buy – Scotland

Help to Buy – Northern Ireland

How does it work?

An equity loan is secured against your property in the same way as a repayment mortgage. The Help to Buy: Equity Loan scheme is not regulated by the Financial Conduct Authority (FCA).

Help to Buy: Equity Loan is provided by the Homes and Communities Agency, (trading as Homes England), they are Treasury run and funded by the Ministry of Housing.

The agency can lend you a minimum of 5% and up to 20% of the market value of your new built home. If you are looking to buy a property in London, you could be eligible for up to 40%.

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